There are many options to choose from when selecting an online futures broker since this is a competitive field. What you need to look for is the reputation of the futures broker, commissions, spreads, and the futures trading platform among important factors.
Since the field is competitive, look at commissions. These can be based on amount traded (such as number of shares) or on a flat fee. Some brokers charge spreads only. The research, trading alerts, charts, and technical indicators offered are also an important factor when choosing an online futures broker. These tools are of great assistance to the trader.
Also, check the minimum required to open an account. Looking at margin rate is advisable as well. So is the product offering. Many online futures brokers have now diversified the range of products that you can trade via their platforms.
In addition to futures, you may be able to trade forex, stocks, and options from a single platform. If you want access to trading via tablets or smartphones, check if it is available (nowadays, usually is).
There are many options to choose from when selecting an online futures broker. Here, we discuss what you need to look into before opening an account.
As many other asset classes, commodities can be traded online
Online futures brokers offer different account types. Your particular situation will determine which account should open. Are you single and want an individual account? Or, perhaps you’re married and plan to open a Joint Account with Right of Survivorship. Some traders are interested in IRA (retirement) accounts. Besides, there are partnership, corporate, trust, and other account types as well.
In addition, once you choose an account type, there is another option with accounts related to the services included. Thus, small investors may end up with basic accounts, while large investors will get premium accounts (i.e., more services, more research, lower commissions / spreads, and so on).
You may also consider opening a free futures trading demo account to practice with virtual currency. This way, you not will only get to practice trading, but will also learn the platform itself and see if it’s something for you.
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